During your IVA

Your obligations

When you entered your IVA, you agreed to comply with its terms. Your core obligations are likely to include:

• Making your monthly contribution on time every month
• Notifying your Supervisor of any changes in income, expenditure, or circumstances
• Cooperating fully with your Supervisor and providing information when requested
• Completing and returning annual review paperwork promptly
• Not obtaining new credit above the stated threshold (usually £500) without consent
• Declaring any windfall or unexpected receipt of money or assets
• Not making preferential payments to any included creditor
• Maintaining payments on secured debts
• Informing your Supervisor if you change your name, address, or employment

Breaching any of these could be treated as a material breach and may lead to your IVA being terminated. It is always better to contact your IP about a problem than to hope it will not be noticed.

Annual reviews

Once a year, your Supervisor will review your finances to ensure your contribution remains appropriate. You will typically be asked to provide three months' recent payslips (or proof of income if self-employed), three months' bank statements, and details of any changes to your household or living expenses. After reviewing, your IP will produce a new I&E statement and adjust your contribution accordingly. Return the requested documents promptly — failure to engage is a common cause of IVA failure.

Declaring a windfall

A windfall is any unexpected receipt of money or assets above the threshold in your proposal. Common examples include an inheritance, a PPI refund or other compensation, a redundancy payment, a prize, or the proceeds of selling a significant asset. Most proposals require you to notify your Supervisor within 14 days of receiving a windfall, and to pay any required amount into the IVA. Failing to declare a windfall is a serious breach and, in some cases, could amount to misconduct.

Things you can do during an IVA

An IVA does not restrict every aspect of your financial life. You can generally open and use a basic bank account, change jobs or take on additional work (though income changes must be disclosed), move to a new rented property, get married or divorced, travel abroad, and receive gifts of money up to the threshold in your proposal.

Restrictions to be aware of

• New credit: Most proposals restrict new credit above £500 (or similar) without your Supervisor's consent. This includes credit cards, loans, hire purchase, and buy-now-pay-later agreements.
• Overdrafts: If your bank discovers you are in an IVA, they may restrict or withdraw your overdraft. Use a basic account that does not rely on an overdraft.
• Directorship: There is no automatic legal bar on being a company director while in an IVA (unlike bankruptcy), but your company's articles of association may contain relevant provisions.
• Regulated professions: Roles regulated by the FCA, and certain legal and public sector roles, may have rules about insolvency. Check the relevant regulatory body's requirements.

Employment and self-employment

If you are employed, your employer is not routinely informed. However, roles subject to periodic financial vetting — particularly in financial services — may involve a register search. If you are self-employed, your IP will need business income records at your annual review, and business expenses and income must be clearly distinguished from your personal finances. If your employment situation changes materially, inform your Supervisor promptly.